Jason Henrichs: Push Back Against the Stereotypes

GUEST MENTOR Jason Henrichs, Managing Director at Startup Institute: Ageism in the startup world is real -- but it cuts both ways. We can trace some of the generational divide to the 90s tech boom, when VCs favored adults and would bring them in to run the startup as soon as it looked successful.

Today, there’s a resurgence of founders doubling as CEOs -- young entrepreneurs in new industries who don’t want to be managed by an older, un-hip generation. I should know: at my company there’s a game affectionately called “Things Jason Owns That Are Older Than Me.”

Understandably, industry factors heavily into the bias that founders -- and even startup employees -- will encounter. Older entrepreneurs working on consumer internet products will find it nearly impossible to get funding in Silicon Valley. On the flip side, fields like biotech and clean energy have a bias against youth, favoring experience and deep technical knowledge that only comes with time. I felt this as a late 20-something starting a biotech company: without 30 years of experience or PhDs, we struggled to gain credibility with VCs.

The only way to overcome ageism as a whole is to push against age-based stereotypes -- a company with a talented, age-diverse workforce will have broader perspective.

With Age, Wisdom

There’s a proverbial concern about teaching an old dog new tricks - can older entrepreneurs or employees with no startup experience learn to make an impact? Can they overcome ingrained, corporate habits to match a startup’s pace and culture? The answer is undoubtedly yes.

There are several key factors older entrepreneurs and employees should stress when pitching investors for funding or pitching themselves for a job. The upside of being an older employee -- even one that hasn’t hustled in the startup ecosystem -- can be a wealth of industry and consumer insights based on experience, and a bigger network of customers and partners.

The same is true for an older founder bringing industry knowledge and connections to the table. Experience is especially valuable in fields like healthcare, where understanding strict guidelines and government regulations is a job unto itself.

An older founder or employee also has to address two key tactical concerns from investors and potential employers:

1. They’re more expensive: More experience means higher salary expectations to maintain a set standard of living. Employees looking to make a switch have to come to terms that the paycheck and benefits found in corporate America aren’t what you’ll find in a startup -- at least, not until you hit it big with the much hyped, but elusive, IPO or buyout.

For founders, sacrifices are sometimes even more extreme. At my last company, my co-founders and I didn’t take salaries to start and even then had to cut our own pay to afford a critical hire.

2. Putting in the hours: Older people often have more demands on their time - families, childcare commitments, etc. But that doesn't mean they’re not equally as effective as a 22-year-old willing to spend all night on the job. In fact, demands on an employee’s time outside of the office can actually prioritization and effectiveness, regardless of age. It’s a balance. The key is a willingness to manage the needs and extremely fast work pace of a startup, and it’s something all parties should consider seriously and talk about openly.

Beyond time and money, perhaps the most critical consideration for startup teams, and the most difficult to perfect, is cultural fit. Ultimately, it doesn't make a difference how old someone is, as long as he or she takes the time to learn how startups (and no two are alike) typically run.

Across the Generational Divide

Ageism is real, but the perception is worse than the reality. As a fortysomething working with people half my age, I sometimes feel it. When entrepreneurs hear what I’ve done in my career, they assume I won’t fit in or won’t understand their lean startup model. But once we start working together, we bridge our generational differences and make something amazing happen.

Perhaps it’s a little optimistic, but I believe that age doesn’t matter. What makes or breaks a startup is smart, motivated people who are knowledgeable and confident in their skills, regardless of the number of candles on their cake.